Yes, you handled it fine, including informing the other parent. The parents of the cousin should also be notified, and that is the obligation of the other parent. It sounds like you have done what you can and the other parent is rationaliing the behavior instead of addressing it in a mature, sensible fashion.
thank you for your comment. you have no idea how much better you made me feel, hearing it from someone whos name has a ph.d after it is exactly what i needed. i didnt want to actually go to a doctor and have him questioned again and again or them examine him physically. i just want him to absolutely forget the incident, and he from the get go never seemed mentally harmed by it so i figure no reason to chance it. i am the one taking it the hardest. thank you again.